Texas Instruments Surpasses Q2 Earnings Expectations, Forecasts Modest Q3 Revenue Amid Supply Chain Adjustments
$TXN
Texas Instruments (NASDAQ:TXN) recently reported its financial results for the second quarter of 2025, surpassing analysts’ expectations. The company announced earnings per share (EPS) of $1.41, which was $0.06 higher than the consensus estimate of $1.35. This marked a significant improvement from the previous year’s EPS of $1.22.
Revenue for the quarter also exceeded forecasts, reaching $4.45 billion against the anticipated $4.35 billion. The company’s stock has demonstrated substantial growth, with a 31.97% increase over the last three months and an 8.39% rise over the past year. This performance is attributed to positive revisions in EPS estimates, with 11 upward adjustments and only one downward revision in the last 90 days.
For the third quarter of 2025, Texas Instruments has set its revenue expectations between $4.45 billion and $4.80 billion. This range reflects the company’s cautious outlook, influenced by ongoing supply chain dynamics and geopolitical tensions. The anticipated EPS for Q3 is between $1.36 and $1.60, excluding potential impacts from recent US tax legislation changes.
During the earnings call, CEO Haviv Ilan highlighted the company’s ability to leverage its global manufacturing capabilities amidst these challenges. He noted significant year-over-year growth across several segments, including a 25% increase in personal electronics and a 40% rise in enterprise systems. The automotive sector, however, showed a more modest increase and a slight sequential decline, underscoring the uneven recovery across different markets.
CFO Rafael R. Lizardi provided additional insights into the company’s financial health, noting a gross profit of $2.6 billion for the quarter, which represents 58% of the revenue. Texas Instruments continues to focus on strategic investments in research and development and capital expenditures, which totaled $1.3 billion for the quarter.
The company navigates through ongoing geopolitical uncertainties and supply chain adjustments, it maintains a strong focus on meeting the evolving needs of its global customer base. Investors and market watchers are keenly observing how Texas Instruments will manage these challenges and opportunities in the dynamic semiconductor industry. The company’s ability to adapt and innovate will be crucial in sustaining its growth trajectory in the face of fluctuating market conditions.
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